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October 24, 2025

Toward a Hybrid Future: Arbitration-Annexed Mediation at the Thai Arbitration Institute

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The Legal Industry Reviews

The Thai Arbitration Institute (TAI), a division of Thailand’s Office of the Judiciary, has taken a step toward harmonizing the tools available for dispute resolution. On August 8, 2025, the institute formally launched the TAI Mediation Center (TAI-MC). Although the amendments to TAI’s Arbitration Rules that will govern the TAI-MC have not yet been finalized, the framework now under consideration suggests that TAI is positioning itself to become a more attractive venue for commercial dispute resolution.

In the regime contemplated under the current version of the amendments, TAI proceedings will adopt an “arbitration-annexed mediation” mechanism—commonly termed the “Med-Arb” model—while preserving the procedural safeguards indispensable to arbitral neutrality. Mediation will be entrusted to a separate, dedicated mediator appointed under the TAI-MC who is precluded from serving on the arbitral tribunal in the same matter. By clearly separating the functions of mediator and arbitrator, the institute eliminates any risk that confidential information disclosed during mediation could influence the adjudicatory outcome if the parties do not settle. Only when all parties subsequently make a request may that same mediator assume arbitral duties in the case.

The parties will retain substantial autonomy in selecting the mediator. They may either designate a mediator by mutual consent or invite the TAI-MC to appoint one from its authorized panel. TAI has announced its intention to curate that panel with particular emphasis on commercial expertise and cross-cultural negotiation skills, supplemented by ongoing professional training. Where the parties cannot agree on remuneration, the mediator’s fee will default to a tariff comparable to the TAI-MC’s cost schedule, which under the current version of the amendments will be approximately THB 45,000 for disputes in which the aggregate claims do not exceed THB 10 million, with incremental increases tied to higher claim values. This predictable cost matrix is aimed at enhancing transparency and budgeting certainty, two concerns frequently cited by counsel when selecting an ADR provider.

Any settlement reached in mediation may be rendered, at the parties’ election, into a consent award signed by the tribunal. Such an award is enforceable under Thailand’s Arbitration Act B.E. 2545 (2002) and, by extension, under the New York Convention, to which Thailand is a party. The prospect of combining the flexibility of mediation with the enforceability of an arbitral award is expected to resonate with foreign investors who have the objective of having such awards enforced in Thailand and elsewhere.

TAI’s initiative mirrors a broader international trend. By integrating a standalone mediation facility into its existing arbitration infrastructure, TAI is signaling that Thailand intends not merely to catch up but to compete for a share of the region’s burgeoning cross-border caseload.

Several practical issues remain open. The draft amendments must address the confidentiality interface between the mediation and arbitration phases, the precise triggers for initiating annexed mediation, and the mechanics for recommencing arbitral hearings if mediation fails. Nonetheless, discussions at the opening event of the TAI-MC suggest that users will enjoy flexibility in sequencing (for example, whether mediation should occur before any substantive hearing or during trial) and that tribunals will be encouraged to adopt pragmatic case management techniques to avoid delay. Once these measures are in place, parties drafting arbitration clauses that designate TAI as the administering institution will have the ability to secure both consensual and adjudicative outcomes within a single, integrated framework.

 

This article was first published in the October 2025 Thailand edition of The Legal Industry Reviews, an international platform that publishes news and applied law updates from industry-leading law firms worldwide. To browse the latest complete issue, please visit The Legal Industry Reviews website.

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